Aftermarket Parts in Construction Industry Market

Aftermarket Parts in Construction Industry Market Size (2023 - 2028):

The Global Aftermarket Parts in Construction Industry Market was estimated to reach a valuation of US$ 1130.84 billion by 2028 and is predicted to register a CAGR of 8.40% during 2023-2028.

The construction industry is a booming global market. This industry has seen significant growth, especially in developing countries, as the improving economy in these regions boosts the market. The continuation of the development process, especially in developing countries, will result in significant growth of this industry in the coming years. The growth of this industry has also seen a similar increase in the sale of spare parts for the construction industry. These parts are installed in a variety of applications and range from fuel systems to engine components.

The growing heavy machinery market will be the main driver of this industry in the future. The aftermarket parts in the construction industry market are estimated to develop at a CAGR of X% over the forecast period of 2021 to 2026. Increasing demand for earthmoving equipment will drive demand in this market.

Market Drivers:

The trend to incorporate additional accessories into cranes for specific applications, such as manufacturing, forestry, oil and gas, and transportation, offers positive prospects for market growth. Cranes are experiencing rapid demand in these verticals due to higher efficiency and better operating performance compared to conventional construction tools. The flexibility these machines offer to connect additional drives, motors, and axles is one of the main factors driving the proliferation of aftermarket parts in the construction industry market.

Market Restraints:

Ongoing R&D activities and technological developments aimed at reducing wear and tear on construction equipment can harm the industry. The high initial purchase cost associated with cranes fuels customer demand for fail-safe machines with minimal maintenance costs. In response to demand, crane manufacturers are focusing on integrating sensor technologies into machines to reduce downtime, which is impacting the proliferation of aftermarket products. Additionally, the high installation and maintenance costs associated with aftermarket products pose a challenge to the growth of the industry.

Market Recent Developments:

• Tata Hitachi launched the EX215LC Quarry, a machine designed to perform in tough quarry applications.
• CLAAS, one of the world's leading manufacturers of agricultural machinery, will once again be present at Bauma Munich with its own stand.
• Deere & Company reported a net income of $ 722 million for the fourth quarter that ended November 3, 2019, or $ 2.27 per share, compared to a net income of $ 785 million, or $ 2.42 per share, for the quarter that ended November October 28, 2018.
• With the proposed Bharat Stage (BS) Term-IV emissions standards, the domestic tractor industry expects a further increase of 25% to 30% in the cost of ownership of equipment over 50 hp, said experts from the industry at a recent virtual summit on the agricultural equipment sector organized by ETAuto.com.

AFTERMARKET PARTS IN CONSTRUCTION INDUSTRY MARKET REPORT COVERAGE:

Market Segmentation:

Aftermarket Parts in Construction Industry Market - By Application:

• Heavy Earthmoving
• Light Earthmoving
• Lifting & Material Handling
• Drilling & Trenching
• Trucking & Hauling

Heavy equipment is essential for construction jobs of almost any size, from home construction to large-scale commercial and civil projects. Earthmoving equipment covers a wide range of machines that can excavate and level soil and rocks, as well as other jobs. Earth-moving machines and other heavy equipment not only speed up earth movement, but also handling demolition, and construction. Many types of heavy construction machinery are designed for multiple functions, making them indispensable on construction sites.

Aftermarket Parts in Construction Industry Market - By Type:

• Cooling Systems
• Accessories
• Electrical Systems
• Fuel Systems
• Others

It may be necessary to cool buildings in hot climates or where there are significant thermal gains (such as solar gain, people, and equipment). This cooling is sometimes called comfort cooling. Cooling may also be necessary for refrigeration or for some industrial processes. The electrical systems in these buildings begin with a step-down transformer provided by the utility company and located within or in close proximity to the building. The transformer reduces standard line potential to two dual voltage systems, which are then passed through main breakers and electricity meters to record subscriber usage.

Market Regional Analysis: 

The Global Aftermarket Parts in Construction Industry Market Report includes the segmentation of regions:

• North America - U.S, Canada
• Europe – Norway, Germany, Sweden
• Asia Pacific- China, India, Japan
• Latin America – Brazil, Mexico, Argentina
• Middle East and Africa

The increasing development of infrastructure in the APAC region will boost the aftermarket parts in the construction industry. Improving the economies of South America, especially Brazil, will also lead to a growing market. The increasing use of vehicles in the construction industry has led to a growing market for aftermarket parts in this industry.

Impact of Covid-19 On Aftermarket Parts in the Construction Industry Market:

Worldwide, construction accounts for more than $ 11 trillion in the industry, of which residential construction is the largest sector. The emergence of the coronavirus has caused a disruption in the residential construction industry. The main disruption is in the supply chain. The transformation of COVID-19 from a China-centric challenge into a global pandemic has changed the impact on supply chains and global construction markets. The financial crisis, the length of the recession, and the path to recovery will largely determine the nature and severity of these challenges. The construction industry, especially the new residential segment, performed well and saw a rebound in activity in many sectors in the first quarter of 2020. Due to the increasing number of cases in North America, many projects in the court considered Essentials by government authorities have not been stopped, but new housing construction permits have been suspended. In the current situation, builders and contractors are scrambling to obtain permits for new and ongoing construction projects. Construction companies and workers want to resume or continue their activities. However, new guidelines and regulations issued by governments have created uncertainty and confusion for both companies and workers. Homeowners in areas with high coronavirus cases limit contractors' access or entry to homes and prefer DIY projects because families stay home. As the number of COVID-19 cases increases globally, its impact on the construction industry is expected to evolve in the coming months. Based on the events in China and Europe, the US construction industry is expected to experience similar challenges with regard to material supply chain disruption, labor shortages, and closures of construction sites throughout the city. Lower estimates suggest that the United States buys about 30% of its construction materials from China, but some companies depend on China for up to 80% of their materials. With international suppliers and logistics companies, many of which are based in China, shutting down their operations in a bid to contain the outbreak, American businessmen are already struggling with their materials supply chain.

Market Key Players:

1. Boundary
2. NTN Global
3. Union Tractor
4. Hitachi
5. Rammer
6. Intracoparts
7. Volvo
8. DSM